Buy Coal India, target price Rs 252: Centrum Broking
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Synopsis
By ETMarkets.com
Last Updated:
Centrum Broking has buy call on Coal India with a target price of Rs 252. The current market price of Coal India Ltd. is Rs 186.7.
Coal India Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 113887.22 Crore) operating in Mining sector.
Coal India Ltd. key Products/Revenue Segments include Other Operating Revenue and Coal for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 25963.12 Crore, down -7.19 % from last quarter Total Income of Rs 27974.12 Crore and up 34.72 % from last year same quarter Total Income of Rs 19271.83 Crore. Company reported net profit after tax of Rs 3175.22 Crore in latest quarter.
Investment Rationale
The brokerage sees the stoppage of e-auction volume to non-power sector as temporary and do not see any risk to estimates. FSA price hike (assumed 10% hike) is round the corner. Volume growth is there in H2FY22 (expect ~9% growth v/s H1FY22), with end of monsoon. Receivable days have been declining (down ~Rs60bn in H1FY22). The stock trades at ~11% dividend yield and 2.6x FY23E EV/EBITDA. The brokerage reiterates BUY with a TP of Rs252, based on 4x FY23E EV/EBITDA.
Promoter/FII Holdings
Promoters held 66.13 per cent stake in the company as of 30-Sep-2021, while FIIs owned 6.74 per cent, DIIs 22.0 per cent.
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Time period given by analyst is one year when Coal India Ltd. price can reach defined target.Coal India Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 113887.22 Crore) operating in Mining sector.
Coal India Ltd. key Products/Revenue Segments include Other Operating Revenue and Coal for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 25963.12 Crore, down -7.19 % from last quarter Total Income of Rs 27974.12 Crore and up 34.72 % from last year same quarter Total Income of Rs 19271.83 Crore. Company reported net profit after tax of Rs 3175.22 Crore in latest quarter.
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Investment Rationale
The brokerage sees the stoppage of e-auction volume to non-power sector as temporary and do not see any risk to estimates. FSA price hike (assumed 10% hike) is round the corner. Volume growth is there in H2FY22 (expect ~9% growth v/s H1FY22), with end of monsoon. Receivable days have been declining (down ~Rs60bn in H1FY22). The stock trades at ~11% dividend yield and 2.6x FY23E EV/EBITDA. The brokerage reiterates BUY with a TP of Rs252, based on 4x FY23E EV/EBITDA.
Stocks Recommendations
Promoter/FII Holdings
Promoters held 66.13 per cent stake in the company as of 30-Sep-2021, while FIIs owned 6.74 per cent, DIIs 22.0 per cent.
Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
